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Tuesday

Fundamental: AUD/USD pair has been trading at
1.045 and is looking to move up after the losses it suffered last week.
Pressure on the US Dollar is affecting commodity currencies, which has brought
the Australian Dollar down. USD has gained traction lately on positive economic
data, and the chances of a monetary stimulus in the US have dimmed.

There is nothing significant on the economic
calendar for AUD for the coming week, so all eyes are on the US Dollar.This
week we’ll find out housing data, jobless claims and data on durable goods
which should move the pair.

In the H4 timeframe, the pair has been moving
in an upward channel since May. While its oscillations were fairly predictable
between mid-June to the end of July, it became much wider since the start of
August and seems to be trading downwards and sideways. The price has an
immediate support level at 1.043, and if crossed, it could fall till the next
support level at 1.0328, after which the channel would have been effectively
broken and a shorting opportunity would begin. There is a bearish bias on pair
so one must remain cautious for a breakthrough of the support level.

This bearish bias in H4 timeframe is confirmed
by studying the MACD and Stochastic. MACDhas been bearish since the 7th of August, which corresponds with the price fall. It continues to be in the negative and a reversal doesn’t seem likely. The Stochastic indicator confirms the bias as it recently displayed a bearish signal. With the trending and the contrarian indicator pointing at the same direction,traders should look out for an opportunity soon .

The hourly timeframe shows the price movement
in the month of August. The AUD/USD pair has been moving in a bearish channel,
indicating that a downward trend may catch on to the 3H chart as well. It is
likely that the price will touch the upper channel and then move downwards, but
the trend line is to face some resistance in the near term as it is already
hovering over the support level of 1.045. Looking at the RSI Indicator, we see
a similar movement as the graph seems to hover at 50 for now.

Look out for news and breakouts in the near
term as it may signal a trend, possibly a bearish one.

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